Crane NXT Reports $1.487 Billion Revenue for Fiscal Year 2024, Driven by Security Segment Growth

Crane NXT, Co. reported a total revenue of $1.487 billion for the fiscal year ending December 31, 2024, marking a 6.9% increase from $1.391 billion in 2023. The growth was primarily driven by the Security and Authentication Technologies (SAT) segment, which saw a 21.5% increase in sales to $613.6 million, largely attributed to the acquisition of OpSec Security. In contrast, the Crane Payment Innovations (CPI) segment experienced a decline in revenue, falling 1.5% to $873.2 million. The company's operating profit decreased by 6.3% to $268.8 million, influenced by lower volumes and unfavorable product mix in the CPI segment, despite productivity gains across both segments.

The company underwent significant strategic changes during the fiscal year, including the acquisition of OpSec for $270 million, which was finalized on May 3, 2024. This acquisition is expected to enhance Crane NXT's capabilities in brand protection and authentication solutions. Additionally, Crane NXT announced plans to acquire De La Rue Authentication Solutions for 300 million British pounds, with the transaction anticipated to close in the second quarter of 2025. These acquisitions are part of Crane NXT's strategy to expand its market presence and enhance its product offerings in the security technology sector.

Operationally, Crane NXT reported a total employee headcount of approximately 4,500 as of December 31, 2024, with a significant portion of its workforce based in the United States. The company also noted that 48% of its net sales were generated from international markets, highlighting its global reach. The backlog of orders stood at $394.1 million, with expectations to recognize approximately 90% of this backlog as revenue in 2025. The company’s focus on research and development remains strong, with R&D expenses amounting to $39.5 million in 2024, aimed at driving innovation and product enhancements.

Looking ahead, Crane NXT expressed optimism about its growth trajectory, bolstered by the recent acquisitions and a strong balance sheet that provides financial flexibility. The company anticipates continued demand for its technology solutions, particularly in the SAT segment, as it seeks to capitalize on emerging market opportunities. However, management acknowledged potential risks, including macroeconomic fluctuations and competition, which could impact future performance. The company remains committed to operational excellence and shareholder value creation through strategic investments and continuous improvement initiatives.